The Sleepy Eye City Council held a special meeting on Wednesday, May 27, to approve the sale of bonds for the city's construction projects.

The Sleepy Eye City Council held a special meeting on Wednesday, May 27, to approve the sale of bonds for the city’s construction projects.

City Manager Bob Elston said the council voted unanimously to approve the sale of $8,830,000 in General Obligation bonds for the 2020-2021 street and utility project and the 12th Avenue/St. Mary’s Street project.

Elston said it was one bond issue for both projects, but each project will be amortized on its own schedule. The 2020-2021 street and utility project is a 20 year schedule, while the 12th Avenue/St. Mary’s Street project is a 30 year schedule.

The total bond issue of $8,830,000 is made up of the following:

Total cost for the 12th Avenue/St. Mary’s Street project is $5,387,597. The city received $1,735,587 in grant funds, have $500,000 in cash, and two other small sources of funds; so the city is borrowing $3,025,000.

For the 2020-2021 street and utility project the city is borrowing $5,805,000.

Elston said, “The true interest cost of the bonds is 2.13%, which is very favorable — nearly on the bottom of the interest curve over the last 20 years.”

The regular City Council meeting is Tuesday, June 9 at 7 p.m. It can be viewed on Ch. 8 or contact the city for login information. The council will discuss outdoor dining, fireworks on July 4, and possible pool opening.